Terminal Value

John Wiley & Sons, Inc. (JW-B)


-0.64 (-%)
Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.98
Free cash flow (t + 1) 234.04
Terminal Value 5,880.41
Present Value of Terminal Value 4,398.33

Now that we’ve estimated the free cash flow generated over the five-year forecast period, we need to estimate the value of John Wiley & Sons, Inc.’s cash flows after that period (if we don’t include this, we would have to assume that John Wiley & Sons, Inc. stopped operating at the end of the five-year forecast period). To do so, we’ll determine the company’s terminal value.